Your Questions About Invest In Gold Mines

Posted by Justin in Investing | Comments Off on Your Questions About Invest In Gold Mines

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Charles asks…

How or where can I buy Gold and Gold Stocks?

What website or place do I go to to buy ounces of gold?

Justin answers:

The cheapest way to buy gold is with the exchange traded fund GLD. One share is 1/10 ounce of gold. There are quite a few gold stocks that you can buy. The largest company is ABX. That is the ticker. Others are NEM, GG, UXG. There are also mutual funds that invest in gold and silver mining companies. Fidelity Canada fund hold some gold stocks. Ticker FICDX. Select Gold Portfolio is all gold mining stocks I think. Ticker FSAGX. There are several gold mining index funds also. GDX is one. PSAU another.

You must open a broker account to buy any of these. Scottrade is an inexpensive on line broker.

James asks…

Do you think the Americans astronauts were the first to land on the moon?

Some experts suggest this was a hoax.
Other people feel the Russians were the first to land on the moon. What are your feelings about this and do you think the government should invest more money in the space program?

Justin answers:

1. The Soviet Union did not claim to send cosmonauts to the moon. Only the United States of America has made that claim. Thus, it is clear that the people who “feel the Russians were the first…” don’t even understand the facts. Feelings, like “wishing” the Russians had been there first, no matter how strongly held, won’t make it so.

2. Yes, I know the American astronaut Neil Armstrong was the first man from Earth to set foot on the moon, and he came home again, too.

3. Incredible technology came from the push we (and the Russians and others) invested in the “Space Race” … How many channels of TV do you have at home? That’s because of the space race. Do you get a fairly accurate weather forecast? How about GPS navigation, Internet access anywhere in the world, safety of ships and aircraft, and so much more. Here’s a story about an indirect benefit I know about…

Before sending men into orbit and then on to the moon, we needed to know how many meteorites there were out there. We built a huge spacecraft (well, it had a huge, wing like detector on it. This wing had lots of tiny microphones to detect impact of space dust. OK, so what came of this?

These tiny microphones, it turns out, can detect the beating of a chicken heart in an egg only 3 days after being laid. So, many drug safety tests were sped up enormously. New medicines would be injected into eggs, and the eggs were set on these microphones. Significant changes in the timing of when the chick’s heartbeat began were a clue that the medicine could cause genetic changes or other problems.

Do I expect the space investment to pay off, for example, by finding a gold mine on Mars or the moon? No, but the investment we make in the science and technology has enormous implications for our future.

I don’t think the government spends enough on space and science!

Paul asks…

What’s the best form of silver to invest in?

Whether it be rounds, bars, bullion or even mining company’s stocks? Also do you find this to be one of the wisest forms of investment out there right now?

Justin answers:

Please read the following sites:

http://silverprice.org/buy-silver/2009/08/tips-on-buying-silver.html

Precious metals are a wise investment now due to currency crises in many countries. Gold is also equally good. Gold market is larger than silver market.

William asks…

Is it possible to invest in 401k using precious metal commodity?

With the news of uncertainty about the state of financial market in terms of stability, and when it does hit the market hard, the banks facing the catastrophe will not allow withdrawal of cash from the individual and business accounts, will the holding of precious metal in the deposit of the trustworthy holder (mutual fund company or other) allow APY (annual percentage yield) in compound interest on precious metal and jewelry (lucrative gems & rare minerals) holding depending on the current market demand for precious metals (fine gold, silver, platinum, etc)? Or does compound interest apply only to paper currency in saving and investment?

Justin answers:

It’s improbable that your 401k plan is going to offer something like that. Few people invest in precious metal funds, so your employer isn’t going to spend money to offer it. I’m not sure that they’re even allowed to offer direct purchases of precious metals.

You may be able to do it through an IRA and you can definitely do it through a taxable account. Check with some IRA providers and see if anyone offers a brokerage option that includes precious metals.

The bulk of your question is difficult to understand. (Try a little punctuation, please!) However, I think that you’re asking how returns work on precious metals as compared to savings accounts.

Precious metals do not pay interest and nothing is compounded. You buy them at the current market price and sell them at the market price in effect at the time of the sale. If the price has gone up when you sell, you’ve made a profit. If the price has gone down, you’ve lost money. Precious metal mutual funds usually invest in mining companies, not the actual metals. Returns work similarly except that you will likely have capital gains distributions and possibly dividends.

If you want compound interest, open a savings account or buy some CDs.

By the way, precious metals are speculative. If you need to ask how price appreciation works, you may want to think twice about buying these. They’re best suited for sophisticated investors with risk capital.

Im new to it all.. and i am interested in investing and i have no real idea of how it really works.. If someone could explain the stock market and how to buy and trade stock, it would really help me out. Thanks!

Justin answers:

Generally speaking the Stock Market refers to equities where actually stocks and derivatives are traded. In the U.S.A. We think the Stock Market is New York City. In fact there are major Stock Markets in Hong Kong, Hamburg, London, Paris, Canada, Japan and others that influence one another and impact the world Stock Market.

The New York Stock Exchange may have stocks listed that are listed on other major Stock Markets. A company headquartered in Amsterdam may be listed on multiple stock exchanges. Many foreign organized companies are listed on the New York Stock Exchange. There is a tremendous value for foreign companies to be listed on an exchange in the U.S. The exposure and knowledge of a foreign company has a face on the New York Stock Market.

An example would be a China stock Baidu. These information and search technology company has grown in leaps and bounds since it was introduced on the New York Market. Sometimes all it takes is making a good impression to stock analysts and a good review by key people to give the foreign company a boost.

The reality of the Stock Market today is its world wide integration of investors, companies and alliances that create an unprecedented dynamic. Thus far this United Nations of the financial markets has produced an unspoken treaty of like minds. The main objective is to create a win-win scenario for all of the world players in the Stock Market.

Any investor wherever located may hold a substantial stake in any given equity no matter where the equity is traded. The Stock Market is a very large private club that anyone can join with the only admission ticket is the price of a single share of stock.

Most people are aware of American companies utilizing off shore manufacturing of their products. It may be not as well known that some traditional American brand companies are owned by foreign companies. Other American brand companies have a significant multi-national presence with significant stock ownership by foreign banks and investors.

The term equity should be broadly interpreted. There are equities that involve the manufacturing of products and goods, but a product can be intellectual or an entity like insurance. Banks are equities and financial brokers are all traded on the various exchanges. An investor may own gold stocks, mining companies and equities that package these equities into a corporate entity. The only limitation is that if the investor is interested in owning the commodity or trading in the futures market the Chicago Mercantile or other commodities exchanges is the investing tool.

In other words you may own a bank as an equity who may have bonds and other commercial paper that may trade on the commodities exchanges, but you can’ t buy a commodity as a stock. If you want a commodity like wheat, currency, corn, gold, silver or the like you need to look to the commodities exchange.

In the United States the New York Stock Market is comprised of the NASDAQ, NYSE and the newly created combination of the NYSE Group with Euronext in April, 2007. The Euronext holding company is a phenomenal synergy between Paris and the NYSE whose history goes back to 1792.

The Euronext is a combination of derivatives, currency and equities to name a sample of products. There are other exchanges that include the AMEX. There are listing requirements for each of the exchanges. The Stock Market is basically a place where buyers and seller of a piece of a company come together and in the process the company hopefully raises some cash or other value.

Check out my free Youtube video for more information:

Michael asks…

Besides precious metals, what else can I buy that would be a good investment for the future?

I want to buy something that will gain value as time goes by but I don’t want to do the whole gold and silver thing like everyone else. Is there anything else?

Justin answers:

The thing about investments is you want to invest in something that increases more than inflation. A dollar now is worth less than a dollar in 1990 and less than a dollar in 1960. So by that definition, almost anything whose value increases more than the inflation rate would be a good investment

If you have the money to invest, a great option right now is real estate. In the long run real estate will go up (excluding any unforeseen disasters). For the most part it will go up along with inflation, but with how low the housing market is right now, any investment you make should increase more than the inflation of the dollar. Between July 2010 and May 2012 I have purchased 4 houses in Southern California. The good thing about real estate is on top of the ability of it to hold it’s value, you can collect rental income from it. For a combined price (two of the rented properties) of $156k I collect $2k monthly which is all profit.

I would still say that precious metals is the way to go. I have a friend who lost his job 2 months ago and is still floating just fine due to his investments in precious metals. He not only invests in gold and silver, but in exploration mining companies. The companies are very high risk, but he gets dividends from them.